The US Federal Reserve (US FED) on Wednesday, taking a major decision on the policy rate, has kept the interest rates stable. Fed Chief Jerome Powell announced this at a press conference after a two -day US central bank meeting. He said that the rate cannot be cut in view of the more challenging outlook of weak economic growth, unemployment and rapid price increase. Meaning fed benchmark overnight rates are stable at 4.25% -4.50%. It is expected that the Fed Reserve can cut the policy rate, but on the contrary the decision came directly impact on the US Stock Market and was closed in the Red Zone from Dow Jones to S&P 500. Due to this, Asian markets are also seen dyed in red on Thursday.
Powell said- ‘If there were no tariffs …’
This is the fourth consecutive time in America, while the Fed Reserve has kept the policy rates stable. Jerome Powell said that if there were no trump tariffs, it would have been appropriate to cut interest rates, because recently inflation figures have been favorable. He further said that the cost is about to shock, as the producers, makers and retail vendors are still entangled in the complex struggle as to who will pay the charges leveled so far and President Donald Trump is still considering an aggressive set of import duty, which may be applicable earlier. According to Fed Chief, ‘All the people I know, all of them are estimating a strong jump in inflation due to tariffs in the coming months. Let me tell you that the Fed Reserve has predicted inflation to reach 3 percent in the issue of 2025.
Decline in US to Asian Market
Talking about the American stock market, they were closed in the red zone. Dow Jones slipped 44 points, S&P closed with a decline of 18 points, while US TECH 100 also slipped 92 points. Talking about the Asia stock markets, then everyone is looking red. On Thursday, Japan Nikeei of Japan was trading at 38597 by slipping 288 points. Apart from this, Hong Kong’s Hang Seng broke 271 points to 23,439 and South Korea’s KOSPI Endx was trading at 2959.56, decline by 0.42%. Looking at the gift of gift Nifty, Gift Nifty slipped up to 80 points in early trade.
Negative signal for Indian market
Already, the pressure of the growing struggle between Israel and Iran is being seen on the Indian stock and it is being closed in the red zone for two consecutive days. Now the impact of the decline from America to Asian markets is likely to fall in the Indian Stock Market on Thursday. Let us know that on Wednesday, the 30 -share Sensex of Bombay Stock Exchange was closed by 138 points in the stock market on the last trading day, while the National Stock Exchange’s Nifty Index (NIFTY) closed down 24,900.
These shares were the most broken
Looking at the most declining shares on Wednesday, TCS, the company of TATA Group, included in the largecap category, was closed at Rs 3452.20 with a decline of 1.79%, while Adani Ports Share (1.55%), Hul Share (1.35%) and Bajaj Finserv Share (1.16%) Happened. Apart from this, talking about midcap shares, IKS Share (8.07%), Max Health Share (3.69%), Biocon Share (2.95%) and NHPC Share (2.95%) closed down. Looking at the smallcap category, the Orient Cement Share (16.59%), while Mobikwik Share (8.76%), Stl Tech Share (6.33%) closed down.
(Note- Be sure to consult your market experts before any kind of investment in the stock market)